Wednesday, 28 January 2015
Last updated 31 min ago
Mar 13 2014 | 12:51pm ET
Hedge fund AIS Capital Management has sued five banks for allegedly manipulating gold prices.
The firm alleges that Barclays, Deutsche Bank, HSBC Holdings, Bank of Nova Scotia and Société Générale “combined, conspired and agreed with one another and unnamed co-conspirators to manipulate the prices of gold and gold derivatives contracts.” The five banks set London’s benchmark gold fix price.
According to the suit, which seeks class-action status, the banks have been manipulating gold prices since 2004, and continue to do so. The illicit activities occur during twice-daily conference calls to set the price, during which “anomalous” price movements suggest manipulation, AIS said.
AIS’s Gold Fund lost 67% last year.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…